Graded InGaN buffers were employed to relax the strain arising from the lattice and thermal mismatch in GaN/InGaN epilayers grown on sapphire. An enhanced strain relaxation was observed in GaN grown on a stack of five InGaN layers, each 200 nm thick with the In content increased in each layer, and with an intermediate thin GaN layer, 10 nm thick inserted between the InGaN layers, as compared to the conventional two-step growth of GaN epilayer on sapphire. The function of the intermediate layer is to progressively relax the strain and to annihilate the dislocations that build up in the InGaN layer. If the InGaN layers were graded too rapidly, more dislocations will be generated. This increases the probability of the dislocations getting entangled and thereby impeding the motion of the dislocations to relax the strain in the InGaN layer. The optimum growth conditions of the intermediate layer play a major role in promoting the suppression and filling of the V-pits in the GaN cap layer, and were empirically found to be a thin 10 nm GaN grown at 750 0°C and annealed at 1000 0°C.